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Since the trade dispute started, Washington and Beijing have imposed 25 per cent tariffs on US$34 billion worth of each other's imports and more punitive duties are in the pipeline.

The ministry also said that the USA measures violated the World Trade Organization rules and damaged China's interests.

"China will not rush to compete with USA numbers", it said, echoing comments made by state television.

In early July, the USA imposed 25 per cent tariffs on US$34 billion of Chinese goods, with another US$16 billion to be targeted in coming weeks, sparking retaliatory measures from China.

April 2: China imposed tariffs between 15 percent and 25 percent on 128 US products worth a total of $3 billion. The step is reportedly being considered by the White House in order to narrow the trade deficit between the United States and China.

The Chinese government has said that it will make a final decision on if, when, and how these tariffs will be implemented next month.

China immediately expanded its own list of types of USA products to be tariffed, including farm products, cars and crude oil.

What do we know about this latest round of tariffs?

"It is very early in the game, but definitely a negative effect".

"Tariffs have had a tremendous positive impact on our steel industry", he said in one tweet. "It's the more far-reaching, unintended consequences, which you don't always know at the beginning".

Days later, Washington unveiled a list of another US$200 billion in Chinese goods, from areas as varied as electrical machinery, leather goods and seafood, that would be hit with 10 per cent import duties.

"Really what we're looking to see is whatever actions are taken do not have the staying, negative fallout as the tariffs did in 2002", Paglia said, referring to tariffs President George W. Bush placed on imported steel.

Lu Xiang, an expert on U.S.

The US economy is more insulated from trade concerns, but Chinese leaders have retaliated strategically, targeting products made in Republican districts and final goods, like soybeans, that can be purchased elsewhere. An all-out trade war could overshadow Trump's otherwise solid economic record of low unemployment and stimulus-fueled growth.

"China to take necessary countermeasures to defend the country's dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries in the world", the statement said. Last year, China imported about $130 billion in goods from the United States. The 25 percent duty would be applied to the proposed list of $200 billion of Chinese products announced on July 10.

In July, the USA published a list of $200bn-worth of additional products to be hit with tariffs of 10% - a figure the United States is now considering raising to 25%. But in the meantime, foreign nations are imposing tariffs on some USA goods such as soybeans and whiskey.

Beijing can not match those measures dollar for dollar, as its exports far exceed imports. "I noticed today that Japan's stock market is now worth more than China's - I love that", he told journalists at the White House. "China is increasingly isolated with a weak economy", he said.

"As the total value of goods under tariffs shoots up, China has little choice but to use LNG and others to top up the value", said Lin Boqiang, professor on energy studies at China's Xiamen University.

U.S. Secretary of State Mike Pompeo, however, remained staunch on Washington's push for fairer trading conditions with China.

A spokesman for China's foreign ministry appealed to Washington to negotiate but could not confirm reports the two sides were setting up talks. Last year, China imported about US$130 billion in goods from the United States.

But the U.S. Commerce Department reported Friday that the American trade deficit climbed to $46.3 billion in June from $43.2 billion in May.